Today the Carnegie UK Trust launched a new £1 million fund to help tackle the poverty premium for low income borrowers in Scotland. The fund aims to support a growing, sustainable not-for-profit personal lending sector.
Loans from high cost credit companies, including pay day loan firms and door step lenders, currently cost people in Scotland millions of pounds in interest repayments every year – with people with the least usually paying the most for their credit.
The Affordable Credit Loan Fund, delivered in partnership by Social Investment Scotland, will help grow Scotland’s successful CDFI and credit unions sectors to reach many more people in need of affordable credit and grant them access to a range of financial support.
The launch of the fund is accompanied by our new short film Speaking out for Fair Credit featuring actor and activist Michael Sheen, and testimony from customers who have been helped by some of the UK’s affordable lenders. The film highlights the positive impact of the sector and asks that government, business and civil society support the vital service not-for-profit lenders provide to some of our poorest citizens.
Join in the conversation at #FairCredit
Find out more by reading the Gateway to Affordable Credit report, a shared output from over 20 organisations which sets out how access to affordable credit can be widened for a more financially inclusive Scotland.